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Infant health impacts of freshwater algal blooms: Evidence from an invasive species natural experiment

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  • Jones, Benjamin A.

Abstract

Economists are increasingly interested in causally interpretable estimates of environmental health externalities, particularly on infant health. This paper focuses on a specific case by investigating microcystin, a toxin produced by freshwater blue-green algal blooms. We exploit a natural experiment caused by a zebra mussel die-off in a large lake located in the state of Michigan, USA to identify changes in microcystin-related infant outcomes surrounding the lake. Using both the synthetic control method and a difference-in-differences strategy, we find that instances of low birth weight around the lake fell by 1.4 percentage points after lake water quality improved. Along the intensive margin, birth weight and length of gestation increased by 17.1 g and 0.47 weeks, respectively. Improvements to low birth weight result in $768,500 in average annual hospitalization cost savings. Many robustness and falsification tests are performed including using both annual and monthly data and accounting for possible weather confounders and seasonality. Results suggest that microcystin can affect infant health at levels below current water advisory guidelines.

Suggested Citation

  • Jones, Benjamin A., 2019. "Infant health impacts of freshwater algal blooms: Evidence from an invasive species natural experiment," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 36-59.
    • Handle: RePEc:eee:jeeman:v:96:y:2019:i:c:p:36-59
    DOI: 10.1016/j.jeem.2019.05.002
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    Cited by:

    1. Zhang, Jiarui & Phaneuf, Daniel J. & Schaeffer, Blake A., 2022. "Property values and cyanobacterial algal blooms: Evidence from satellite monitoring of Inland Lakes," Ecological Economics, Elsevier, vol. 199(C).
    2. Jones, Benjamin A., 2023. "Can invasive species lead to sedentary behavior? The time use and obesity impacts of a forest-attacking pest," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    3. Lindley, Sarah & Albeke, Shannon & Viers, Joshua & Parsons, George & Johnston, Robert & Newbold, Stephen C., 2022. "Valuing Satellite Data for Harmful Algal Bloom Early Warning Systems," RFF Working Paper Series 22-23, Resources for the Future.
    4. Zaveri,Esha Dilip & Russ,Jason Daniel & Desbureaux,Sebastien Gael & Damania,Richard & Rodella,Aude-Sophie & Ribeiro Paiva De Souza,Giovanna, 2020. "The Nitrogen Legacy : The Long-Term Effects of Water Pollution on Human Capital," Policy Research Working Paper Series 9143, The World Bank.
    5. Da Mata, Daniel & Emanuel, Lucas & Pereira, Vitor & Sampaio, Breno, 2023. "Climate adaptation policies and infant health: Evidence from a water policy in Brazil," Journal of Public Economics, Elsevier, vol. 220(C).

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    More about this item

    Keywords

    Water quality; Zebra mussels; Infant health; Microcystin; Synthetic control method; Algal blooms;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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